Luxembourg Socialist Workers’ Party (LSAP) MP Georges Engel explained that they had been presented with figures from Eurostat, but he felt that new calculations were constantly being produced so that the social minimum wage would not have to be adjusted. In his view, the government would do everything it could to avoid an increase.
He argued that structurally nothing was being done about the minimum wage and that it effectively remained unchanged. He added that the government’s claim to address poverty fell far short and described this as a real shame, noting that while there was money for many other areas, there seemed to be none for those on low incomes. Engel concluded that the government’s claim to tackle poverty was lacking and that this was regrettable.
Democratic Party (DP) MP Carole Hartmann also emphasised that the calculation model itself had not been changed, but that it had been presented more precisely. She noted that there had been clarifications regarding the so-called Kaitz index, which represents the ratio of the legal minimum wage to the median wage.
According to Hartmann, it had been explained that Luxembourg currently stood at around 59.3% to 59.4% of the median income using this index, meaning the country was moving towards 60% when calculating the minimum wage.
In Marc Baum’s view, what had been presented largely corresponded to what former labour minister Georges Mischo had already proposed. The Left MP therefore questioned why a new minister was needed. He said that the government intended to continue its current approach in place since 1973, maintaining the index system and keeping the minimum wage tied to it. He added that the existing system of adjusting the minimum wage every two years in line with real wage developments would also remain unchanged.
Baum criticised this approach, arguing that it ignored the issue of the working poor – people in full-time employment who still live at risk of poverty. He also criticised the lack of discussion about a substantial and structural increase in the minimum wage, claiming that the calculations used were deliberately chosen to avoid the need for action without it being outlined in the directive.
Djuna Bernard of the Greens also expressed disappointment. Drawing attention to low-income earners in Luxembourg, particularly those on the minimum wage and those classified as working poor, an increase in the minimum wage would have been beneficial for the country and for social cohesion. However, she laments that, instead, the government has chosen to maintain the status quo.
Labour Minister Marc Spautz reiterated that no final decision had yet been made. He said he personally had hoped for a decision by Easter but this appears to be a difficult deadline to make.
He added that it remained important to communicate any decision clearly so that companies could prepare in advance and understand the potential financial impact. At the same time, he emphasised the need to consider the current economic climate, ensuring that companies could maintain their competitiveness and continue to operate effectively.
On Friday, the council of ministers is set to meet to discuss, among other topics, the adjustment of the minimum wage.
